Rational Choice
The Equation for Rule of Rational Choice
What is MEXB > MEXC?
The definition of scarcity
What is desirable but limited?
Whom scarcity applies to
Who is everyone?
Equal economic outcomes
What is egalitarianism?
The definition of Libertarianism
What is freedom?
How positive incentives change MEXB & MEXC
What is MEXB↑ MEXC↓?
The definition of economics
What is the study of the allocation of limited resources to satisfy our unlimited wants?
The dy/dx of y=∛ (x2)
jk, free points
A tangible product
What is a good?
The definition of a service
What is intangible
How negative incentives change MEXB & MEXC
What is MEXB↓ MEXC↑?
The definition of empirical analysis
What is using data/results to test a hypothesis
The decision making of firms & households in individual markets
What is microeconomics?
Definition of positive analysis
What is how people do behave?
How people should/ought to behave
What is the definition of normative analysis?
What people are motivated by
Self-interest
The definition of rationality
What are... Preferences, ranking preferences, attempt to maximize utility?
True/false: correlation = causation
No! Two events occurring together does not mean one caused the other.
The factors of production
The different economic systems
Tradition
Hierarchy/command
Market/capitalism
When you will choose not to do something
MEXB < MEXC
The definition of opportunity cost
What is the highest valued alternative foregone?
The room ETC is hosted
Where is LI 103?
What are the parts of CELL?
Capital- Equipment
Human capital- Skills & knowledge
Entrepreneurship- Creating value
Land- Natural resources
Labor- The effort given by workers
The three Ps
What are prices, profits, and property rights?